LCTO restructures:
miami.internet.com
El Sitio Restructures, Cuts Staff
By William Plasencia
The Miami Beach-based internet portal company El Sitio Inc., , today said its staff of 400 will be
slashed by approximately 25 percent as part of its planned merger with Ibero American Media
Partners (IAMP).
El Sitio announced last October that it would merge with IAMP -- a joint-venture between
Venezuela's Cisneros Group of Cos. and the private investment firm Hicks, Muse, Tate & Furst
Inc. -- and form the Miami-based multimedia content company Claxson Interactive Group.
In a press release announcing the lay offs, the company said the cuts were necessary to avoid
"anticipated overlaps, particularly in the areas of marketing and advertising, sales, corporate and
administration." In forming the Claxson group, El Sitio's operations will be merged with IAMP's
broadcast radio, television and pay television operations.
Leandro Anon, chief operating officer of El Sitio, called the management restructuring "strategic
adjustments" that were aimed at making the company "flexible and operationally efficient."
The staff cuts and other reductions, which will be claimed in the company's fiscal fourth quarter
2000, are expected to produce annual cost savings of approximately $8 million to $9 million,
Anon said. "[This] will better position us to become a profitable contributor to Claxson in the
future."
Employees affected by the cuts will receive outplacement services and medical coverage for an
extended period, the company added.
On the news, shares of El Sitio stock dropped 8 cents, or 5.1 percent, to $1.45.
February 2, 2001 |
